Consumer prices for the middle 60 per cent went up 0.5 per cent last year, and rose 0.8 per cent for the top 20 per cent.

This was a result of higher food and petrol prices, tuition and other fees, healthcare services costs, electricity tariffs, parking fees, road tax, salaries for foreign domestic workers and water prices, the Statistics Department said.

While inflation ended the year on a muted note, economists said consumer prices are expected to rise at a slightly quicker pace this year on the back of strengthening economic growth.

Inflation came in at 0.4 per cent in December - below November's 0.6 per cent and marginally lower than economist estimates of a 0.5 per cent rise.

Core inflation, which strips out accommodation and private road transport costs, rose to 1.5 per cent for the whole of last year, from 0.9 per cent in 2016.

"We do not think that prices are going to 'run away higher' anytime soon in 2018," said United Overseas Bank economist Francis Tan.

"However, it is a fact that external demand has turned stronger and the improving domestic labour market condition will boost Singapore's core inflation to a higher range of 1 per cent to 2 per cent. This is up from a zero to 1 per cent range back in the 2015 to 2016 period."

Official forecasts tip inflation of between zero and 1 per cent this year - broadly similar to last year - despite stronger economic growth and higher oil prices.